France targets wealthiest citizens with taxes
(MENAFN) French Prime Minister Francois Bayrou has unveiled a new austerity initiative that includes a higher tax burden on the country’s wealthiest citizens, aimed at addressing France’s mounting debt and narrowing a significant budget gap.
As part of the plan, a new “solidarity contribution” will be introduced for top income earners. The existing levy applied to individuals earning more than €250,000 (around $270,000) is expected to be expanded to further bolster revenue. “The effort of the nation must be equitable. We must ask little of those who have little, and more of those who can do more,” Bayrou stated on Tuesday.
France is currently grappling with a budget shortfall of €43.8 billion (approximately $47.5 billion), with last year’s deficit reaching 5.8% of GDP—almost double the EU’s recommended ceiling of 3%.
Among the more controversial elements of Bayrou’s proposal is the elimination of two national holidays—Easter Monday and Victory Day on May 8—in a move aimed at improving productivity. The suggestion has sparked backlash, with right-wing figure Jordan Bardella calling it “a direct attack on our history and roots.”
Other aspects of the cost-cutting strategy include restrictions on healthcare spending and a freeze on pensions and social benefits at current 2025 levels.
Despite these cuts, France’s military will see increased funding. Defense expenditures are projected to rise to €64 billion ($69 billion) by 2027—double the defense budget in 2017. President Emmanuel Macron has also announced an additional €6.5 billion ($7 billion) in military spending over the next two years, citing escalating threats to European security as the justification.
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